# Analysis of strategies to use market monopoly status to restrict new entrants Monopolies can use a variety of price strategies to maintain their market position and hinder the entry of new competitors. Here are some common methods.： ## Strategic pricing method 1. **Predatory pricing**: Temporarily reduce prices below cost in markets where new entrants appear, and then increase prices after competitors withdraw. 2. **Price squeeze**: Supply necessary resources at high prices in the upstream market, while selling at low prices in the downstream market, squeezing the profit margins of new entrants 3. **Cross-subsidy**: Use monopoly profits in one market to subsidize low-price competition in another market to defeat new entrants 4. **Bundling and tying**: Bundling monopoly products with other products to increase the difficulty of competition for new entrants ## Principles and mechanisms of Economics - * *Barriers to economies of scale**: Reducing unit costs through large-scale production makes it difficult for new entrants to reach the cost level of effective competition -**Sunk cost effect**: Create high industry entry costs and increase market entry risks -**Network effect utilization**: In markets with network effects, use the advantages of the existing user base to prevent users from migrating to the new platform. These strategies are restricted by anti-monopoly regulations in many countries because they may harm market competition and consumer interests.